Oman GDP Expands 5.1% in Second Quarter Driven by Strong Oil Output
Oman's economy expanded 5.1% year-over-year in the second quarter of 2026, reaching roughly RO 9.9 billion in real gross domestic product. The growth brought first-half real GDP to approximately RO 19.5 billion, representing a 3.8% increase compared to the same period a year earlier.
A robust performance in the hydrocarbon industry served as the main engine for second-quarter expansion, with oil sector activity increasing 14.7% year-over-year. Crude oil production climbed 15.2% while natural gas output rose 11.7%. However, non-oil sectors grew by just 0.7% year-over-year and contracted 1.1% from the previous quarter, highlighting an ongoing reliance on energy markets despite national initiatives to diversify the economic foundation.
Fiscal metrics indicate continued stability, with full-year real GDP growth projected at 3.5% for 2026 and a general government budget surplus expected at 4.8% of GDP. Public debt is forecasted to decline to 30.2% of GDP. Going forward, the focus remains on advancing the 11th Five-Year Development Plan to strengthen non-oil sectors such as manufacturing, logistics, tourism, and renewable energy.
Key points
- Oman's real GDP grew 5.1% year-over-year and 2.4% quarter-over-quarter in Q2 2026.
- Oil sector activity surged 14.7% year-over-year, supported by a 15.2% rise in crude oil output.
- Non-oil activities recorded modest 0.7% year-over-year growth and contracted 1.1% quarter-over-quarter.
- Full-year 2026 real GDP growth is projected at 3.5%, with a budget surplus of 4.8% of GDP.
- Public debt is expected to drop to 30.2% of GDP as Oman continues its long-term economic diversification.
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How we writeDisclaimerQuestions and answers
How much did Oman's GDP grow in Q2 2026?
Oman's real GDP grew by 5.1% year-on-year and 2.4% quarter-on-quarter in the second quarter of 2026, reaching approximately RO 9.9 billion.
What drove Oman's economic growth in the second quarter of 2026?
The oil sector was the primary driver, rising 14.7% year-on-year as crude oil production increased by 15.2% and natural gas output grew 11.7%.
What is the economic outlook for Oman in 2026?
Full-year real GDP growth is projected at 3.5%, alongside a government budget surplus of 4.8% of GDP and a decline in public debt to 30.2% of GDP.